Led by Genie, Terex Posts 10.5-Percent Sales Increase in Third Quarter
Terex Corp. reported third quarter 2917 sales of $1,228.5 million, compared to $1,111.2 million in the third quarter of 2017, a 10.5 percent increase. The company posted increased sales and backlogs in its AWP and Materials Processing business segments.
The Terex AWP business segment posted $634.2 million in sales compared to $556.7 million in the third quarter of 2017, a 13.9-percent boost. The Materials Processing segment posted net sales of $295.2 million compared to $259.9 million a year ago, a 13.6-percent hike. The Cranes segment was essentially flat with $301.2 million in net sales compared to $301.9 million in the year-ago quarter.
For the first nine months of 2018, Terex posted $3,891.9 million in sales compared to $3.299.8 million in the first nine months of 2017, a 17.9-percent boost. In the nine-month period, Terex AWP posted $2,024.2 million in sales compared to $1.622.1 million in last year’s nine months, a 24.8 percent jump. The Materials Processing segment reported $917.2 million compared to $789.5 for the year-ago time frame, a 16.2-percent leap. The Cranes segment recorded a solid increase for the nine-month frame, jumping 9.3 percent from $869.6 million a year ago to $950.5 million this year.
“We continue to see strong global demand for our products,” said John Garrison, Terex chairman and CEO. “We increased sales, bookings, and backlog in this quarter. AWP bookings grew by 50 percent to $601 million, reflecting continued strong demand for AWP products across all our major regions. Overall backlog increased by 41 percent to $1.6 billion, led by a 72 percent increase in MP. AWP continues to execute well, meeting growing customer demand and improving operating margins despite input cost headwinds including tariffs. MP had another excellent quarter. It improved its operating margin again, as it continues to execute very well across its portfolio of businesses.
“As a result of supply chair challenges, our mobile crane operations did not achieve its production plan. That led to lower Cranes revenue and margin in the quarter which impacts our outlook for the full year.”
“In Q3, we increased sales, backlog and bookings, and moving forward, we are planning for continued growth in every region,” said Matt Fearson, president of Genie Terex AWP. “The growth that we are projecting is driven by global construction growth, replacement demand and increased adoption in Europe and developing markets. The Genie team maintains a steady cadence of new product introductions and enhancements by listening to our customers and designing products that address their specific needs. We will continue to meet the growing demand of our customers around the world thanks to the commitment of our experienced and passionate team.”
Garrison said the company is continuing to implement its ‘Execute to Win’ priorities.
“We are updating our full year 2018 adjusted EPS guidance to $2.60 to $2.70,” added Garrison. “While our global markets remain strong, this guidance reflects our third quarter results, updated production plan in Cranes, higher input costs including tariffs, and anticipated foreign exchange headwinds.”
